We weren't broke until the government told us we were back in September. This has been many years(not just the last 8) in the making. My view is : it started in the Clinton admin. Credit was being promoted...everyone had plastic and didn't know how to use it. WE are a "I want it now society, no matter the cost" Oh that new TV will only be $39.00 a month! Oh that new SUV will only be $960.00 a month after they pay off my other one(no thought about being upside down). I can afford that $300,000 home with nothing down because it is appreciating at 10% every year...I can sell in a couple years and make a fortune.
My loan officer has a sign on his wall "Live within your means. Even if you have to borrow to do it"